Important Retention Requirements & Numbers

Question 1

How often does the DNC list need to be updated and how long must records be kept?

Answer 1

Updated every 31 days

Records kept for 2-years (24 months)

Question 2

Fine for violating DNC & when can calls be made to consumers?

Answer 2

$42,530 per call

Between 8am - 9am

Question 3

Under DNC Rules, restrictions do NOT apply and an established business relationships can be established in two ways:

Answer 3

18 months after the consumers last purchase

3 months after the consumer makes an inquiry or submits an application

Question 4

When can a seller make financial concessions to a buyer? And what are the limits by loan type?

Answer 4

If the buyer is using a government backed loan

FHA Loans = 6%
VA Loans = not subject to a percentage cap

Question 5

How long do FHA borrowers have to occupy a property after closing?

Answer 5

60 Days

Question 6

What are the loan limits on FHA Loans?

Answer 6

Lost Cost Areas = $331,760

High Cost Areas = $765,600

Question 7

How long must an Escrow Account be established for High-Priced Loans?

Answer 7

5 years

Question 8

For loans that are rescind-able, how many copies of the Right to Rescind Disclosure must the borrower receive?

Answer 8

2 copies

Question 9

How long does a borrower have to rescind their loan?

Answer 9

Up to 3 days after closing, must be in writing

Question 10

How long does the lender have to refund all fees when a borrower exercises their right to rescind?

Answer 10

20 days

Question 11

What are the permissible APR change tolerances on regular and irregular transactions?

Answer 11

1/8 of 1% for regular transactions

1/4 of 1% for irregular transactions

Question 12

How long must records of closing disclosures be kept?

Answer 12

5 years

Question 13

How long must records of TILA disclosures be kept?

Answer 13

2 years

Question 14

How long must records of Loan Estimates be kept?

Answer 14

3 years

Question 15

What are the penalties for TILA violations?

Answer 15

$5,000 per day for single violations

$25,000 per day for reckless violations

$1,000,000 per day for knowings violating TILA/TRID

Question 16

Unless it’s a Bridge Loan, what’s the minimum term for a Balloon Payment under HOEPA?

Answer 16

5 years

Question 17

Under ECOA, what are the time-frame requirements for notifying a borrower of actions taken?

Answer 17

30/30/90

Receipt of completed application = 30 days

Adverse action on an incomplete or existing account = 30 days

Counteroffers not accepted or credit offered = 90 days